According to an outlook and “Weekly Take” video series from CBRE Hotels Americas Research, recovery in the US hotel sector will eventually happen, and this report spells out how that will transpire for each type of hotel and their location.
Overall, CBRE forecasts a strong recovery in 2021 and 2022, with RevPAR climbing back to pre-crisis levels by 2023.
For the rest of 2020, it predicts average occupancy of just 41%, down from 66% in 2019, while 2021 sees roughly 60,000 rooms fewer, as a result of hotels closing permanently or being converted to other uses.
It sees Urban Hotels as one of the hardest hit because of its reliance on corporate travelers, groups and international travellers, while suburban select-service and lifestyle brands and extended-stay hotels are more resilient because they cater to contract workers and infrastructure-construction crews.
Airport hotels have been hard hit by travel coming to a stop, with occupancy down 70% in April and 50% in June compared with 2019. Interstate Hotels have been strong, benefiting from travellers on staycations and temporary residence for infrastructure-construction workers, but resort hotels have only just started seeing a boom from summer leisure travel.